Ok I'm confused, they are receiving 8.6 million pre (That means before the reverse split, right?) and they just did a 1 for 9 reverse split, that gives them 77.4 million shares (9 times 8.6 mil.)? And total outstanding shares right now after the reverse split are 4.6 million, the retail shareholder is getting screwed. Or am I understanding this wrong??
This looks to me, if I'm understanding correctly, to be a horrible deal for the retail shareholder. There is going to be massive dilution If they are receiving, 8,622,278 pre reverse stock split shares of common stock. Is there any time limit as to when they can sell, as there is with preferred shares?
Why did they also amend the previously announced terms of the transaction to remove the closing condition that Authentidate receive approval from Nasdaq Stock Market for the transaction. Seems to me it would have been better to wait and get approval instead of delisting and then re-applying. Seems strange, not quite right....
Also they are receiving an aggregate of 19.9% (8,622,278 pre reverse stock split shares of Common Stock) of Common Stock of Authentidate?? How does that work?
The merger agreement has been modified to remove the issuance of any preferred stock of Authentidate and provide that the consideration will linstead be comprised of shares of Common Stock of Authentidate. The transaction will proceed upon substantially the same terms as previously announced; including the requirements for EBITDA based benchmarks of the AEON business. The AEON members will be entitled to receive additional shares of Common Stock tied to the earnings of AEON during the four calendar years commencing with the completed financial results for December 2015 through December 2019. The AEON members will receive at closing an aggregate of 19.9% (8,622,278 pre reverse stock split shares of Common Stock) of Common Stock of Authentidate parties further amended the previously announced terms of the transaction to remove the closing condition that Authentidate receive approval from Nasdaq Stock Market for the transaction.
Authentidate expects to receive notice from The Nasdaq Stock Market of its delisting. Authentidate expects that its Common Stock will trade on the OTC QB market following its delisting from The Nasdaq Stock Market. The trading symbol will remain unchanged. Authentidate expects to submit a listing application to The Nasdaq Stock Market in the near future to regain its listing.
They don't know that, that why there is a clinical hold in place. Does an obese person just form blood clots because they are obese?? Hummmm...
Yes, Zafgen said a sufficient number of patients had completed the randomized portion in two separate trials of beloranib to assess the efficacy of the drug.
On Wednesday, the company said it would address the clinical hold on its investigational new drug application by presenting to the FDA the efficacy and safety data from several trials and proposing a risk mitigation strategy.
So still on a clinical hold.
The trial is not complete, it is still under a clinical hold. But Zafgen in December said a second patient died during a the open-label extension portion of a late-stage trial, two months after the FDA temporarily halted the randomized portion to investigate circumstances surrounding the previous death.
The results they released are because the company said a sufficient number of patients had completed the randomized portion in two separate trials of beloranib to assess the efficacy of the drug.
They are still going to have to convince the FDA that there is more reward than risk with this drug.
Could be they are announcing that they can not find a bank to secure financing.
Lucas will assume $31,350,000 in commercial bank debt, issue 552,000 shares of a newly designated form of convertible preferred stock, issue 13,009,664 shares of common stock, and pay $4,975,000 in cash. The closing of the acquisition is subject to closing conditions including Lucas placing the commercial bank facility to fund the $4.975 million cash required to acquire the properties; Lucas obtaining stockholder approval for the issuance of the shares of common stock in the closing and upon conversion of the preferred stock; the effectiveness of a registration statement registering the common stock and common stock issuable upon conversion of the preferred stock issued at closing; Lucas's continued listing on the NYSE MKT prior to and following the closing; and the consent of various creditors of the sellers.
The consent of various creditors of the sellers to me seems a big deal as oil prices continue to fall and that they need to borrow all of the cash for the purchase as they have no money.
I just posted for all of the new uninformed retail investors that have chased this thing up the 4 days over 300% on what I consider worthless news. Can you say irrational exuberance??
All of the Convertible Notes are due and payable on October 1, 2016, accrue interest at the rate of 6% per annum (15% upon the occurrence of an event of default), and allow the holder thereof the right to convert the principal and interest due thereunder into common stock of the Company at a conversion price of $1.50 per share
This is the 4th draw of $200,000 in 5 months, The Line of Credit, which had an effective date of August 28, 2015, provides the Company the right, from time to time, subject to the terms of the Line of Credit, to sell up to $2.4 million in convertible promissory notes.
These shares should crash...
Can't think if I was a lender, that I would be willing to give financing. But then again I'm not.
Lucas Energy to Assume $31.35M in Commercial Bank Debt, Issue Newly Designated Convertible Preferred Stock in Exchange for Assets
One of the conditions to close this deal is to find a commercial bank facility to fund the $4.975 million cash required to acquire the properties.
This is for a company that has 1.75 million in revenue for the past year, which is down 70% from last year. They have $250, 000 in cash and have debit of 7.4 million.
They are increasing their outstanding shares from 1.5 million to14,514,902 shares of common stock issued and outstanding. Not including the preferred shares being issued.
People buying this after a 300% run up in price on this news are nuts! They will get crushed.
Just my opinion...
agree, these type moves always amaze me.
Shares of Lucas Energy (LEI - Get Report) are up 5.45% to $7.70 in early market trading on Monday despite the company being downgraded to "sell" by analysts at Euro Pacific.
In addition to the Notes, the Company will issue common stock purchase warrants equal to 16.6% of the Company's issued and outstanding common stock, to the purchasers of the Notes. Each warrant will become exercisable six months after issuance, and will allow the warrant holder to acquire one additional share of common stock of the Company at a price equal to 120% of the market price per share on the date of closing